Friday, August 13, 2010

Razor blades

Everyone who has studied business in the last 50 years or so has learned the story of Gillette giving away their razors. You see the profit wasn't in selling razors, it was in selling blades over-and-over-and-over again.

I'm guessing that before long eBook reader makers will get the same idea. The price of the Kindle, Nook, Libre, etc. have been dropping steadily and will soon be below $100. Since the real profit is in selling eBooks (virtually free to re-produce and sell at 90% plus profit) why not go all the way and give them away.

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